Saudi Cable cancels agreement with Rawafid Al-Mustaqbal Investment

Saudi Cable Company has announced the cancellation of its working capital financing agreement with Rawafid Al-Mustaqbal Investment Company. The cancellation stems from the investor’s inability to implement the agreement on time, citing the following reasons:

1. The agreement stipulated that the investor deposit SAR 30 million into the company’s account before October 26, 2023. However, the investor failed to comply, only paying twenty million riyals five months after the agreed-upon date.
2. The agreement also required the investor to purchase raw materials worth SAR 110 million before October 26, 2023. However, the investor only purchased materials worth SAR 4,863,863 and has not made any further efforts to procure materials to date.
3. Additionally, the agreement outlined that the debt would be converted into shares at the nominal value of the share (10 riyals). This condition, part of the financial restructuring plan, was objected to by the company. The company asserts that there was no authorization or decision from the previous board of directors allowing the signatory to agree to this clause. Moreover, the company maintains that the signatory lacked the authority to add other clauses included in the agreement, which were deemed against the interests of the company’s shareholders.
4. The company criticizes the previous management for failing to protect the company’s interests and obligate the investor to fulfill agreed-upon payments. This failure led to the loss of supply contracts with some customers and additional operational losses incurred due to commitments made based on expected financing from the investor.

Saudi Cable Company affirms its intention to take necessary legal measures in accordance with applicable regulations to safeguard the rights of the company and its shareholders